IRI Summit: Walgreens to Focus on Solution Sets

Walgreens grew its baby care basket sizes by 41% by positioning diapers, baby aspirin and other baby products in solution sets, rather than by category. As part of its effort to capitalize on increased traffic resulting from more localized trips, the chain will leverage similar solution sets storewide, announced Kim Feil, vice president and chief marketing officer for Walgreens, yesterday at Information Resources Inc.'s 2009 Summit.

LAS VEGAS — Walgreens grew its baby care basket sizes by 41% by positioning diapers, baby aspirin and other baby products in solution sets, rather than by category.

As part of its effort to capitalize on increased traffic resulting from more localized trips, the chain will leverage similar solution sets storewide, announced Kim Feil, vice president and chief marketing officer for Walgreens, yesterday at Information Resources Inc.'s 2009 Summit here.

The retailer has also embarked upon a SKU rationalization effort to create more space for significant categories. So far it's involved pairing nine SKUs of flashlights down to one.

"We'd like to streamline our expanded health and wellness assortment, make it easier to shop a more compelling beauty section, and provide more information in places like our vitamin section," said Feil.

The chain will measure the effects of such efforts against five shopper segments. They include:

Efficient Eileen — A young Baby Boomer or older Generation Xer who shops the store often, enjoys efficiency and information delivered at the shelf.

Active Amy — A family-focused, fickle, convenience seeker who is not loyal to a specific retailer.

Socialite Stella — Shops for fill-in trips, tends to be African American, likes to be in-the-know, treats shopping like a treasure hunt.

Merry Maria — Advice seeking, community-conscious, tends to be Hispanic, consults with circulars and shops for entire basket.

Care Seeking Carol — Health care is her No. 1 priority, does not use the Internet or respond to efficiency cues, smaller basket size.

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